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Food & Beverage

Analyst sees strong year ahead for food makers

December 01, 2009
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Citi analyst David Driscoll says food manufacturers have a very good year ahead of them, reports the Associated Press. Consumers are eating at home more often, the popularity of store-brands is slowing and increasing advertising spending and product creation all bode well for food makers'' profitability, Driscoll wrote in a research note. And with lower debt levels on manufacturer''s balance sheets, the year is ripe for share repurchases and mergers and acquisitions. Food manufacturers have "all the ingredients" to see above-average earnings growth during 2010, making it a compelling investment year, he said. The recession has helped some food makers as consumers shied away from restaurants and began to cook at home. And some of the recent challenges to profitability -- the stronger dollar and commodity costs -- are expected to abate some in the coming year.
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